Subcontracting and US Companies

Subcontracting and US Companies - Subcontracting and US...

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Subcontracting and US Companies Tultex – Why did it fail? Liz Claiborne – why did it succeed? Statistical process control (hyper taylorism) Hiring policies Women’s experience Tultex – very tied to Martinsville, geographically rooted Unionized and paid higher wages in comparison to the industry Didn’t outsource or subcontract in time Branding – had none Liz - did everything right in terms of globalization. Took advantage of globalization forces. Statistical process – QC, high quality and technological Choose subcontracting firms that had very low wages Greenfields stragedy – rural women’s areas Subcontracting – the main reason for it is the low wages New communication and technology makes globalization possible NAFTA and reduced enforcements of free trade Rise of the branding stragedy – when you can distinguish yourself in the marketplace as a brand. Tultex – in Martinsville, VA. Made sweatshirts and T shirts. Fleece manufacturing Subcontracted in Mexico in 1995 but all was manufactured in Martinsville up until then Too little too late, folded in 1999 Liz C Is all about the brand Not a single factory of its own Burlmex – subcontracting manufacturing firm in Mexico – one of many that produced her clothes in 1990. She did very well while Tultex started folding Tultex – Why it failed? It wasn’t a brand, made clothes for other brands – had contracts for Nike, Walmart. Couldn’t compete with prices of clothing made in Mexico
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This note was uploaded on 08/31/2009 for the course SOC 359 taught by Professor Williams during the Spring '09 term at University of Texas at Austin.

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Subcontracting and US Companies - Subcontracting and US...

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